Bengaluru-based staffing company TeamLease Services Limited has acquired IT staffing solutions provider ASAP Info Systems for an enterprise value of Rs 67 crore. The transaction would be financed with existing financial resources and is expected to close before the end of August 2016, TeamLease Services said in a statement on Monday.
ASAP Info Systems, a Tier 1 staffing provider, offers IT staffing solutions to various MNCs and domestic companies with over 1,000 associates and 171 core employees as of date. The company reported an Ebitda of Rs 11 crore in FY16 on a revenue realisation of about Rs 63 crore.
Founded in 2002 by college friends Manish Sabharwal and Ashok Reddy, TeamLease’s core business is to provide temporary staffing solutions for companies across sectors. Its clients include Microsoft India, LG Electronics, ICICI Lombard, Bata India and Larsen & Toubro. TeamLease was also the first temporary staffing solutions firm to get listed on the Indian bourses, earlier this year.
“This transaction creates an opening balance for TeamLease to build an IT staffing business. The acquisition is also in sync with our strategy of margin expansion through new product verticals and new client segments,” said Ashok Reddy, managing director and co-founder, TeamLease Services Limited.
TeamLease has for long serviced IT companies for non-IT staffing positions, but now expects ASAP Info Systems to help continue expansion in the space after merging its current offices.
K J Suwresh, director, ASAP Info Systems, said “We are glad that we were able to come to an agreement with TeamLease. Their vision of “Putting India to Work” resonated with us. Further, we were attracted to their track record of growth and long term strategy of building an institution. We are confident our combined capabilities and resources will create a formidable force in IT staffing.”
TeamLease’s shares were up by 2.89 percent, around noon on Monday, at Rs 1,107.9 apiece over the previous closing share price of Rs 1,076.80.